Bank Rules- If both the account holder and his nominee die suddenly, then who will get the money? This question comes to mind many times, but very few people know the answer to it. Let us understand the bank’s rules in this case in simple words.
When someone opens a bank account, the account holder often chooses a nominee, that is, the person who will receive the money after his death. But if both the account holder and the nominee die simultaneously or at different times, the matter becomes a little complicated. In such a situation, where will the money go? The answer to this is legal heirs.
Who are the legal heirs?
Legal heirs are those people who are directly related to the account holder’s family, such as husband/wife, children, parents or siblings. But money will be received only when they show the correct documents to the bank. First of all, the bank has to be informed about the death of the account holder and the nominee. After this, the death certificate and documents proving your identity (such as Aadhaar or PAN card) have to be submitted.
If everything goes well, the bank may ask for a letter of disclaimer or a legal heir certificate from the heirs. But if the amount of money is large or many people are claiming, then a succession certificate may have to be obtained from the court. The bank will check these documents and then distribute the money among the heirs. The division will be done according to the Indian Succession Law (such as Hindu Succession Act, 1956).
If the account holder has made a will, the money will be distributed according to what is written in the will. If there is no will, the money will be distributed among family members according to the law. For example, the husband/wife and children may get an equal share. If no heir comes forward, the money goes to the government after a long time, but this happens very rarely.